Illinois Leasing Agent Practice Exam

What regulation is associated with lead-based paint in real estate?

1. Only licensed contractors must handle lead-based paint.

2. Known paint hazards must be disclosed.

3. Paint must be removed before selling a property.

4. Lead testing is optional for properties built before 1978.

The correct answer is: Known paint hazards must be disclosed.

The regulation associated with lead-based paint in real estate mandates that known paint hazards must be disclosed. This requirement stems from the Residential Lead-Based Paint Hazard Reduction Act, which aims to protect the health of potential occupants, particularly children, who are at risk of lead poisoning due to exposure to lead-based paint and its dust. Under this regulation, sellers and landlords are obligated to inform potential buyers or renters about the presence of lead-based paint in properties built before 1978, when the use of lead-based paint was banned in residential properties. This disclosure must be made before the lease or sale is finalized, allowing individuals to make informed decisions regarding their health and the property’s condition. The focus on disclosure rather than outright removal or testing emphasizes the importance of transparency in real estate transactions, which helps mitigate the risk of lead exposure without imposing a blanket requirement for paint removal or testing, unless specific conditions warrant such actions.